Aussie Dollar loses grip on 0.70 rally as Fed, RBA inflation tests lurk

Source Fxstreet
  • AUD/USD slips 0.26% to 0.7016 as the Greenback strengthens.
  • Middle East diplomatic efforts push Oil lower, improving market sentiment.
  • Australian inflation and Fed decision could reshape monetary policy expectations.

The Australian Dollar drifted lower on Monday, down over 0.26%, as market mood was positive, as reflected by Wall Street ending in the green, while a potential de-escalation of the US-Iran conflict pushed energy prices lower. Broad US Dollar strength weighed on the Aussie, even though the Australian central bank is expected to raise rates towards the end of the year. The AUD/USD exchange rate is 0.7016.

AUD/USD retreated despite risk-on mood, as USD strength overshadows RBA hike speculation

This week three major central banks will release their monetary policy decisions, but most eyes will be on the Federal Reserve (Fed). On Wednesday, the Fed is expected to hold rates unchanged, and while a rate hike is priced in by money markets, a dovish message from Fed Chair Kevin Warsh at his press conference could push the Greenback lower.

Geopolitical news pushed Oil prices lower, amid reports that the Mecca Pact members Iran, Turkey, Pakistan, and Saudi Arabia agreed to continue talks. Meanwhile, speculation of a coordinated US-Israeli attack on Tehran persists after Iranian officials excluded nuclear talks from the pact reunion.

In the US, the economic docket remained absent, but on Tuesday, Durable Goods Orders, the ADP Employment Change 4-week average and the Conference Board (CB) Consumer Confidence are eyed.

Ïn Australia, the schedule will resume on Wednesday with a speech by the Governor of the Reserve Bank of Australia (RBA), Michele Bullock, along with the release of Australia’s inflation data. Trimmed Mean CPI for September is expected at 0.3% MoM, a tenth higher from August’s 0.2% increase. On an annual basis, a reading above August’s 3.6% can pave the way for another rate hike.

AUD/USD Price Forecast: Technical outlook

Chart Analysis AUD/USD
AUD/USD daily chart

In the daily chart, AUD/USD trades at 0.7016, maintaining a bearish near-term tone as spot holds beneath the clustered simple moving averages (SMA) set around 0.7073. The pair also trades below several upward-sloping trend lines, including the one intersecting near 0.7103, which now acts as overhead resistance, while the Relative Strength Index (RSI) at 50.6 points to neutral momentum rather than strong directional conviction.

On the topside, initial resistance is located at the SMA cluster around 0.7073, followed by the near-term trend-line barrier at 0.7103 and the more prominent horizontal cap at 0.7198, with higher structural hurdles emerging at 0.7453, 0.8968 and 0.9941. On the downside, first support is seen at the upward trend line around 0.6919, ahead of a deeper structural floor near 0.6354, where the longer-term descending trend line break price is located.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Australian Dollar Price Today

The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Japanese Yen.

USD EUR GBP JPY CAD AUD NZD CHF
USD 0.25% 0.21% 0.43% 0.10% 0.29% 0.30% 0.29%
EUR -0.25% -0.00% 0.14% -0.17% 0.05% 0.05% 0.05%
GBP -0.21% 0.00% 0.15% -0.17% 0.06% 0.05% 0.05%
JPY -0.43% -0.14% -0.15% -0.32% -0.13% -0.13% -0.12%
CAD -0.10% 0.17% 0.17% 0.32% 0.19% 0.22% 0.22%
AUD -0.29% -0.05% -0.06% 0.13% -0.19% 0.02% 0.01%
NZD -0.30% -0.05% -0.05% 0.13% -0.22% -0.02% 0.00%
CHF -0.29% -0.05% -0.05% 0.12% -0.22% -0.01% -0.01%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
The Fed will sit still on October 28 — but 100 of 100 economists now expect a December hikeA Reuters poll run October 16-20 found 94 of 100 economists expecting the Fed to hold at 3.75-4.00% on October 28 — and all 100 expecting a hike in December, against less than half a month earlier. The market is close to the same price, with CME FedWatch at roughly 17% for October and 82.8% for December. With the Fed in blackout since October 17, here are the five dates that decide the rest of the year, what each one is priced for, and the two directions each can take.
Author  Irene Q.
Oct 22, Thu
A Reuters poll run October 16-20 found 94 of 100 economists expecting the Fed to hold at 3.75-4.00% on October 28 — and all 100 expecting a hike in December, against less than half a month earlier. The market is close to the same price, with CME FedWatch at roughly 17% for October and 82.8% for December. With the Fed in blackout since October 17, here are the five dates that decide the rest of the year, what each one is priced for, and the two directions each can take.
placeholder
Gold Price Analysis Today | Forex Gold Analysis | XAU/USD Analysis - October 26, 2026Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 26, 2026. Read on for the details.
Author  Mitrade
22 hours ago
Get the latest gold price analysis, forex gold insights, and XAU/USD analysis for October 26, 2026. Read on for the details.
placeholder
Big Tech's $800 billion AI bill faces its first real test — free cash flow is the judgeAlphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.
Author  Irene Q.
18 hours ago
Alphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.
placeholder
Gold breaks $4,000 as oil becomes the inflation problem — $3,943 is the line that mattersSpot gold closed at $3,995.6 on October 23, down about 4.1% for the week and at its lowest since mid-July, and traded near $3,988 on October 26 even as Brent crude settled at $116.72 and Middle East supply risk stayed elevated. The war premium stopped working because oil is now the inflation trade: December Fed hike odds are 68.9% and the 10-year yield is 4.988%. Here are the three numbers, the transmission chain, and the July low at $3,943 that decides whether this is a bottom or a bigger correction.
Author  Irene Q.
17 hours ago
Spot gold closed at $3,995.6 on October 23, down about 4.1% for the week and at its lowest since mid-July, and traded near $3,988 on October 26 even as Brent crude settled at $116.72 and Middle East supply risk stayed elevated. The war premium stopped working because oil is now the inflation trade: December Fed hike odds are 68.9% and the 10-year yield is 4.988%. Here are the three numbers, the transmission chain, and the July low at $3,943 that decides whether this is a bottom or a bigger correction.
placeholder
Bitcoin Price Forecast: Drops Below $80,000 in Fifth Straight Loss, May Test $75,000 as FOMC Meeting Approaches Bitcoin falls below the $80,000 mark as the October FOMC decision approaches, threatening a further dip toward $75,000.On October 26, Bitcoin (BTC) again lost the key psychological mark o
Author  TradingKey
14 hours ago
Bitcoin falls below the $80,000 mark as the October FOMC decision approaches, threatening a further dip toward $75,000.On October 26, Bitcoin (BTC) again lost the key psychological mark o
Related Instrument
goTop
quote